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Permalink Reply by Steve P on January 13, 2024 at 10:39

thanks for posting this, Skip.  Very informative article.  Louisiana and Texas gas production both have significant advantages over gas produced in other regions if that gas has to travel interstate in order to get to market.

The author mentions Army Corp of Engineers regulation of "waters" under the CWA.  The Corp's jurisdiction was significantly reduced with the US Supreme Court's decision last year regarding "wetlands".   Will be interesting to see how that change in regulations will play out on licensing of new interstate NG pipelines.

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Permalink Reply by Skip Peel - Mineral Consultant on January 14, 2024 at 8:22

You're welcome, Steve.  Although I have not seen any recent mention, in the past the transportation cost differential between Haynesville gas and Marcellus gas was $0.70/mcf.  A decided advantage for Haynesville.

The Corp has amended its regs for the CWA "wetlands" and certainly that will benefit pipelines in some instances.  However due to rising ocean levels and increased risk of flooding and storm damage, portions of the pipeline network below I-10 will have to take that into consideration.  There is already a huge amount of O&G infrastructure in low lying and marsh areas of S LA.  The cost to move, replace or harden that infrastructure would be massive.

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